Regulatory AlertsFinansinspektionen’s regulations and general guidelines regarding occupational pension undertakings (FFFS 2019:21)
Finansinspektionen issued these regulations to implement the EU IORP 2 Directive into Swedish law, specifying actuarial calculations, capital requirements, and governance for occupational pension undertakings. The framework includes amendments that lower capital requirements for infrastructure investments, introduce group solvency rules, and align insurance distribution standards with broader insurance undertakings. Additional provisions impose extra capital requirements on assets with mortgage or residential credit exposure and exclude certain digital operational resilience outsourcing agreements from specific regulatory chapters.
Finansinspektionen’s regulations and general guidelines regarding occupational pension undertakings
In force from 2020-01-01
Summary
The regulations, which apply to occupational pension undertaking, i.e., occupational pension companies, mutual occupational pension companies, and occupational pension associations, specify how the undertakings must calculatie their actuarial provisions and risk-sensitive capital requirements. The regulations also contain provisions on the occupational pension undertakings' own funds, governance systems and investments, and on the information the undertakings must provide to, for example, the insured.
The regulations implement, together with the Occupational Pension Undertakings Act (2019:742), Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORP 2) into Swedish law. It also includes some national addenda in relation to the Directive.
Amendments to the basic regulation
The amendments entail in part lowered capital requirements and basic requirements on environmental sustainability for approved infrastructure investments. In addition, the provisions have been adapted for insurance distribution following amendments to the Occupational Pension Undertakings Act (2019:742).
The amendments enter into force on 6 July 2021. Amendments 2021:8
Under the amendments, Finansinspektionen introduces an additional capital requirement for occupational pension undertakings that invest in assets with direct exposures to mortgages that meet specific requirements. Amendment 2021:3
The amendments enter into force on 1 June 2021.
Under the amendments, FI introduces new regulations and general guidelines for calculation of group-based own funds and group-based capital requirements (group solvency) and for group governance. The objective of the amended regulations is to achieve group regulation that corresponds to the regulations that apply to groups under the Insurance Business Act (2010:2043).
Furthermore, a new provision is introduced on the distribution of insurance. The objective is to achieve the same level of protection regardless of whether the insurance is provided by an insurance undertaking or an occupational pension undertaking. Amendment FFFS 2020:11
Amendments
The amended regulations entail that the provisions on outsourcing agreements do not apply to the outsourcing agreements covered by Chapter V of EU Regulation on digital operational resilience for the financial sector.
The amendments enter into force on 17 January 2025. Amendment 2024:32
The amendments entail in part a lower capital requirement and basic requirement on environmental sustainability for qualifying infrastructure investments. In addition, the provisions on insurance distribution have been adapted to align with amendments to the Occupational Pension Undertakings Act (2019:742).
The amendments enter into force on 6 July 2021. Amendment 2021:8
Under the amendments, Finansinspektionen introduces an additional capital requirement for occupational pension undertakings that invest in assets with direct exposure to residential credits that meet certain conditions. Amendment 2021:3
The amendments enter into force on 1 June 2021.
Documents
FFFS 2019:21
Changes
Number
FFFS 2024:32
Date
2025-01-17
Heading
FFFS 2024:32
Number
FFFS 2021:8
Date
2021-07-06
Heading
FFFS 2021:8
Number
FFFS 2021:3
Date
2021-06-01
Heading
FFFS 2021:3